A small business must start with a small budget. You can’t start any business, however small, with no money. If you plan everything carefully, you will need moderate capital to start a small business.
Following tips could be of great help for solo, home based or other professionals to start a small business with low budget.
After deciding on a profitable idea, you will have to set up a sustainable structure that can grow with each day. For this you will need to set up a right legal entity that will provide you protection from any legal liability. This should also offer you best tax advantages.
Next step in setting up your business should be to start a sound banking relationship by opening a business account. Every bank has its own policy on fess for service charges, which vary widely from bank to bank. Start with a bank which does not charge any fees.
In order to keep your budget low, look for the marketing material, that is also low on cost, for initial publicity. You will require a business logo, some printed material and business cards, to be procured at minimum cost.
If you have opted for an online business even then you will require all the above material in addition to a website. You will have to tap right source to accomplish all this within small budget. You need to act smart by knowing what could be put together to convert into most economical package complete with website to generate more sales and leads.
While selecting a website, you should be more careful. Don’t pay for a website which has no traffic or any effective marketing material. Such costly mistakes need to be avoided to keep your budget as low as possible.
You should estimate your marketing budget for at least 6 months and put that much amount aside in advance. For fair estimate of expenses, figure out how you will reach customers directly, then do exact calculation of ROI on money that you will spend. Don’t cover too broad an audience; restrict it to small specific group. Select most effective but least expensive technique to reach them. You should adopt a strategy that will prompt targeted audience to take some action. This will convert leads into deals. Once you acquire this skill your business will start flourishing.
Initial marketing budget could be low and if you track the effects of measures on results, you can modify or discard marketing techniques that are not producing results, and replace them with other effective ones.